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Finding a safe and suitable option to store your funds is quite crucial for all investors and traders. If your funds are not secure, you are likely to spend more time worrying about that than making trades and properly exploring what the crypto space has to offer.
As the crypto space is evolving, new and innovative features are being introduced for enthusiasts. Before you start crypto investing or trading, you must learn about various storage options and choose the one that is most secure and suitable.
In this article, we will briefly compare two of the best options available, which include the widely used crypto wallets and the technologically advanced Web3 wallets.
To learn more about the Bybit Web3 wallets you can check out our detailed article.
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Crypto Wallet vs Bybit Web3 Wallet
The basic purpose of a wallet from either category is to provide safe storage to the users. However, there are a few similarities and differences between Web3 and crypto wallets.
To explore where both types of wallets overlap in features or vary from one another, we will take a look at the comparison below.
Also read: Types of Crypto Wallets Explained
Similar Features of Crypto and Web3 Wallets
There are a few features that are similar between crypto and Web3 wallets. Knowing the similarities can help you get a good idea about what they offer and how they can connect on some level.
Here are the similarities between crypto and web3 wallets.
Simple User Interface
A straightforward user interface is one of the elements similar between both storage options. A user-friendly interface can make it easier for people to view their assets. Easy access to the account enables people to make quick decisions, with minimum inconveniences.
Most of the crypto and Web3 wallets offer an easy way for people to view their accounts and simplify decision-making to great extent.
Custodial and Non-custodial Options
Another similarity between crypto and Web3 wallets is that they are used to store cryptocurrencies. Both types of wallets offer both custodial and non-custodial options. Thanks to this availability, the users of either wallet can send, receive and even store their assets, without extreme restrictions.
Hot and Cold Storage Features
The availability of hot and cold storage features is an important element to consider before opting for a wallet. Even though both hot and cold storage has their pros and cons a major difference is in the level of security.
Hot wallets are connected to the internet. This makes the assets a bit more vulnerable to cyber threats and failures, making hot wallets a not-so-secure option for many.
Cold wallets, on the other hand, offer higher security because they are not connected to the internet and protect assets from cyber-attacks of any kind.
Read: Ledger Hardware Wallet: Is It Safe for Cryptocurrency?
Since both the crypto and Web3 wallets offer hot and cold storage features, the users can opt for one based on what suits them the most and the level of security they want.
Difference Between Crypto and Web3 Wallets
The basic function of both crypto and Web3 wallets is the same, which is to provide storage. However, the biggest difference between both types of wallets is what you can store in them.
The use of crypto wallets is limited to a great extent. This is because you can only store crypto assets in the crypto wallets. This storage option offered by the crypto wallets is, therefore, restricted.
Read: How to Set Up a Basic Crypto Wallet?
A Web3 wallet, on the other hand, is far more versatile. These wallets are usually connected with decentralized applications (DApps) and blockchains. Due to this, Web3 wallets allow users to store other assets other than digital currencies, such as NFT collections.
Read: Benefits and Drawbacks of Using the Bybit Web3 Wallet
Final Takeaways of Bybit Web3 Wallet!
Web3 wallets are a bit more versatile and technologically advanced as compared to the crypto wallet. However, a new crypto trader can find it difficult to opt for a wallet if they lack the necessary information. Therefore, it is important to get a good idea of how Web3 wallets work and how they are different from crypto wallets so you can choose the best asset storage option.
If you are interested in using the Bybit exchange then check out our detailed tutorial below.
